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Canada 

Economic  Position  and  Plans 
for  Development 


Guaranty  Trust  Company 
of  New  York 


Canada 

Economic  Position  and  Plans 
for  Development 


Guaranty  Trust  Company  of  New  York 
140  Broadway 

FIFTH  AVENUE  OFFICE  L  ON  D  O  N   O  F  FI  CES 

Fifth  Avenue  and  43rd    Street  ?2    Lombard    Street     E.   C. 

5  Lower  Orosvenor  Jrl.,  b.  W. 

MADISON  AVENUE  OFFICE  PARIS  OFFICE 

Madiflon  Avenue  and  60th  Street  Rue  des    Italiens,    1   and   3 


u^ 


COPYRIGHT,  1919 
GUARANTY  TRUST  COMPANY  OF  NEW  YORK 


Canada  ^^^^-^^^^^ 

Economic  Position  and  Plans 
for  Development 

OF  those  portions  of  the  globe  to  which  its  in- 
habitants are  now  turning  to  obtain,  through 
development  of  natural  resources  and  expansion  of 
economic  life,  reparation  for  the  damages  of  war,  and 
restoration  of  world-wide  prosperity,  none  holds 
larger  promise  than  Canada.  It  is  a  land  of  tre- 
mendous possibilities,  not  only  for  those  who  live 
there  and  the  people  of  the  Western  Hemisphere 
generally,  but  also  for  the  world  at  large,  stricken 
in  many  quarters  as  it  is  and  oppressed  everywhere 
by  the  magnitude  of  burdens  accumulated  during  the 
last  four  years. 

Canada  enters  upon  the  period  of  readjustment  to 
a  peace  basis  with  the  consciousness  of  having  ac- 
complished extraordinary  things  during  the  war,  not 
the  least  of  which  was  a  swift  passage  to  that  stage 
of  economic  life  where  the  basic  industry  of  agri- 
culture is  enlarged  by  intensive  efifort,  and  manu- 
factures have  advanced  to  an  extent  indicative  of 
ability  to  provide  beyond  domestic  needs.  Such  a 
result  was  obtained  under  the  pressure  of  a  demand 
calculated  to  enlist  to  the  uttermost  the  skill  and 
energy  of  the  Dominion.  With  equal  enthusiasm  her 
people  are  turning  now  to  the  exercise  of  those 

[1] 


5?Cli&TrrC'7 


;qualijbfe3  iit  tlieir  pr4>blem  of  holding  to  the  benefits 
that  have  accrueci  to  them  and  reahzing  the  impUca- 
tions  of  their  achievements. 

There  is  ample  justification  for  their  belief  that 
they  have  not  set  themselves  an  impossible  task. 
Sparse  as  is  the  Canadian  population  just  now  in 
comparison  with  the  extent  of  territory;  inadequate 
as  is  their  industrial  organization  compared  with  that 
of  the  United  States^  or  Great  Britain,  or  France,  or 
Japan;  difficult  as  it  may  be  under  the  conditions 
likely  to  prevail  for  some  years  to  come  to  finance 
the  multifarious  operations  incident  to  a  general  and 
simultaneous  development  of  agriculture,  mining, 
manufacturing,  and  commerce,  both  domestic  and 
foreign;  the  attitude  of  the  Canadians  themselves  and 
the  estimation  in  which  they  are  held  by  the  United 
Kingdom  and  the  United  States  give  assurance  that 
their  aspirations  will  be  encouraged  in  a  very  sub- 
stantial way  both  at  home  and  abroad.  Already 
there  are  under  consideration  plans  by  which  Canada 
will  conserve  her  labor  supply  and,  by  her  intelligent 
treatment  of  the  immigrant,  foster  its  increase. 
Every  effort  is  being  made  to  readjust  the  industrial 
organization,  which  war  conditions  called  forth,  to 
a  peace  basis,  without  loss  of  time  or  efficiency.  As 
for  the  problems  of  finance  the  Canadian  banks  are 
establishing  additional  branches  in  sections  where 
their  services  are  likely  to  be  required,  foreign  offices 
are  being  set  up  to  handle  export  and  import  trans- 

[2] 


actions,  and  foreign  institutions  are  establishing 
branches  in  Canada.  Altogether  there  is  well  under 
way  the  construction  of  the  necessary  machinery  for 
business  on  such  a  scale  as  Canada  contemplates. 

Agricultural  Productions 
The  natural  resources  which  it  is  proposed  to 
develop  are  immense  in  extent  and  variety.  Agri- 
culture is,  and  will  long  continue  to  be,  the 
chief  industry  of  the  country,  whatever  progress  may 
be  made  in  manufactures.  It  has  been  greatly  stimu- 
lated during  the  war  both  in  the  direction  of  a 
diversity  of  crops  and  in  the  manner  of  their  cultiva- 
tion. As  the  labor  supply  diminished  with  the  con- 
tinuance of  the  war,  intensive  methods  of  farming 
became  necessary.  During  the  year  1918  there  was 
a  marked  tendency  toward  mixed  farming,  which  was 
reflected  in  a  reduced  production  of  wheat  and  oats. 
The  estimated  yield  in  bushels  of  crops  for  1918  as 
compared  with  1917  is  as  follows: 


CROPS 


1917 


1918 


Wheat 233,742,850 

189,301,350 

Oats     .   .    . 

403,009,800 

380,273,500 

Barley     .    . 

55,057,750 

77,290,240 

Rye      ... 

3,857,200 

8,496,700 

Peas     .    .    . 

3,026,340 

3,110,100 

Beans      .    . 

1,274,000 

3,568,380 

Buckwheat 

7,149,400 

11,428,500 

Flax     .... 

5,934,900 

5,972,200 

Mix  Grains 

16,157,080 

35,730,300 

Corn  for  husk 

inj 

? 

7,762,700 

14,214,200 

[3] 


CROPS  1917  1918 


Potatoes     .    .    . 

79,892,000 

104,512,700 

Turnips,  etc.  .    . 

63,451,000 

130,989,600 

Hay  and  Clover 

13,684,700  (tons) 

14,681,400 

Fodder  com   .    . 

2,690,370  (tons) 

4,776,000 

Sugar  beets    .    . 

117,600 

180,000 

Alfalfa 

262,400  (tons) 

446,400 

The  production  of  crops  is  likely  to  be  stimulated 
by  the  plans  now  being  made  to  settle  soldiers  return- 
ing from  Europe  and  war  workers  at  home  as  farmers 
on  the  vast  stretches  of  land  hitherto  undeveloped. 
A  census  taken  at  the  front  in  1917  showed  that  of 
230,000  Canadian  soldiers  interviewed,  105,000  ex- 
pressed a  desire  to  become  farmers  after  the  war.  Of 
these,  78,000  had  had  previous  experience.  Canada 
feels  that  the  returning  soldiers  have  a  special  claim 
upon  her  and  that  by  treating  them  liberally  in  the 
matter  of  land  grants  she  will  not  only  meet  an 
obligation,  but  also  will  contribute  to  the  general 
prosperity,  on  the  theory  that  when  agriculture  is 
prosperous  the  other  industries  will  be  also. 

Forest  Resources 

The  forest  products  of  Canada  rank  next  to  those 
of  agriculture  in  value  of  production,  the  total  for  the 
last  year  being  estimated  at  $175,000,000.  In  value 
of  forest  resources  Canada  is  surpassed  only  by 
Russia  and  the  United  States.  The  forest  belt  ex- 
tends across  the  country  a  distance  of  nearly  4,000 
miles,  with  an  average  breadth  of^about  700  miles, 

[4] 


giving  an  approximate  area  of  2,500,000  square  miles. 
The  nominal  forest  area  has  been  estimated  at 
1,000,000,000  acres  and  the  actual  available  area  of 
merchantable  timber  at  200,000,000  acres.  The  sup- 
ply of  merchantable  timber  is  about  one-fourth  of  the 
supply  available  in  the  United  States.  There  are 
forty-five  principal  commercial  woods  produced. 
More  than  one-half  of  the  standing  timber  of  the 
Dominion  is  in  British  Columbia,  where  is  the  largest 
and  most  compact  area  of  merchantable  standing 
timber  left  in  the  world  today.  The  area  covers  more 
than  180,000,000  acres  and  the  amount  of  timber  is 
estimated  at  nearly  400,000,000,000  feet.  The  value 
of  forest  products  exported  during  1918  is  estimated 
at  $65,436,204  as  compared  with  $52,280,875  in  1917. 
The  manufacture  of  wood  pulp  has  become  an 
important  industry,  having  increased  more  than  250 
per  cent,  during  the  last  ten  years.  The  output  of 
wood  for  pulp  manufacture  in  1908  was  482,777 
cords,  with  a  value  of  $2,931,653.  In  1917  the  output 
was  2,101,356  cords,  and  the  value  $18,788,333.  The 
pulp  wood  resources  of  the  country  are  estimated  at 
1,033,370,000  cords. 

Metals  and  Minerals 

Canada  is  well  supplied  with  important  metals 
and  minerals  and  the  studies  which  have  been  made 
during  the  war  by  the  Imperial  Munitions  Board  are 
expected  to  result  in  a  Urge  exploitation  of  them. 

[5] 


The  Dominion  Government  has  appropriated  $200,- 
000  for  making  the  experiments  with  lignite  as  a 
substitute  for  anthracite  recommended  by  the  Coun- 
cil for  Scientific  and  Industrial  Research,  and  a 
similar  sum  has  been  provided  by  Manitoba  and 
Saskatchewan.  Canada  is  largely  dependent  upon 
other  countries  for  oils  but  an  eflFort  is  now  being 
made  to  develop  deposits  in  Western  Canada.  The 
quantity  and  value  of  some  of  the  important  mineral 
productions  during  1917  follow: 


MINERAL 

QUANTITY 

VALUE 

Cobalt     .    .    . 

1,089,134  pounds 

$1,742,614 

Copper    .    .    . 

108,860,358  pounds 

29,588,254 

Gold    .... 

747,366  ounces 

15,449,426 

Lead    .... 

32,072,269  pounds 

3,571,889 

Molybdinite   . 

271,530  pounds 

271,530 

Nickel     .    .    . 

84,470,970  pounds 

33,778,388 

Platinum     .    . 

49  Ji  ounces 

5,090 

Silver  .... 

22,150,680  ounces 

18,034,419 

Zinc     .... 

31,227,351  pounds 

2,779,547 

Asbestos     .    . 

144,185  tons 

7,215,389 

Chromite    .    . 

36,352  tons 

490,001 

Coal     .... 

14,015,588  tons 

47,643,646 

Graphite     .    . 

3,714  tons 

402,892 

Gypsum  .    .    . 

339,418  tons 

887,170 

Magnesite  .    . 

58,090  tons 

728,275 

Mica    .... 

2,401,629  pounds 

366,587 

Natural  Gas  . . 

26,465,686  cubic  feet 

5,003,342 

Pyrilis     .    .    . 

403,243  tons 

1,586,091 

Salt 

138,909  tons 

1,047,792 

Portland  Cemen 

t        4,768,488  tons 

7,669,521 

Lime    .... 

6,338,212  bushels 

1,517,918 

[6] 


The  total  value  of  Canada's  mineral  productions 
in  1917  was  nearly  $193,000,000.  There  are  many 
minerals  not  included  in  the  above  compilation  which 
are  known  to  exist  in  large  amount,  but  which  have 
not  yet  been  developed  in  commercial  quantities. 
The  output  of  the  principal  mining  industries  in 
1918  was  about  the  same  as  during  1917  because  of  a 
shortage  in  labor  supply,  but  the  value  increased 
considerably,  being  estimated  at  $220,000,000.  The 
production  of  coal  during  1918  is  estimated  at 
15,180,000  short  tons.  The  estimated  production  of 
the  more  important  metals  during  1918  is  estimated 
as  follows: 

Gold,  $14,750,000  in  value;  silver,  20,800,000 
ounces;  copper,  117,000,000  pounds;  nickel,  91,500,- 
000  pounds;  zinc,  36,000,000  pounds;  pig-iron, 
1,182,000  short  tons. 

The  Fisheries 

During  the  war  much  more  attention  than  formerly 
was  given  by  the  Canadians  to  their  fisheries,  because 
of  the  reahzation  that  in  them  the  country  possessed 
an  offset  to  the  world  shortage  of  food.  The  sugges- 
tion is  now  made  that  the  Government  turn  to  them 
as  a  debt  paying  source,  and  under  the  direction  of 
the  Dominion  Fish  Committee  plans  are  being  made 
to  exploit  both  the  Atlantic  and  Pacific  coasts  and 
the  lakes  in  Alberta,  Saskatchewan,  and  Manitoba. 
There  are  5,000  miles  of  coast-line  on  the  Atlantic 
and  7,000  miles  on  the  Pacific.    The  inland  fisheries 

[7] 


cover  200,000  square  miles  of  fresh  water,  or  half 
the  fresh  water  area  of  the  world.  Not  including  the 
vast  quantity  of  fish  caught  of  which  no  record  is 
kept,  the  value  of  fish  marketed  by  Canadians  in 
1917  was  $52,352,044,  of  which  the  sea  fisheries  con- 
tributed $47,052,605  and  the  inland  fisheries,  $5,299,- 
439.  Nearly  100,000  men  were  employed  in  the  in- 
dustry and  the  value  of  the  equipment  used  was 
estimated  at  $33,520,748.  The  Council  for  Scientific 
and  Industrial  Research  has  been  studying  the  utili- 
zation of  the  great  quantities  of  fish  waste.  It  is 
estimated  that  300,000  tons  of  fish  offal  and  non- 
marketable  fish  are  annually  allowed  to  go  to  waste 
and  that  the  fish  oil  which  could  be  obtained  from 
this  waste  would  be  worth  nearly  $6,000,000  at  cur- 
rent market  prices,  while  other  by-products  would 
reach  a  value  of  several  hundred  thousand  dollars 
more. 

Railroads 

There  are  eighty-three  steam  railroads  in  Canada 
with  a  total  mileage  of  5 1 ,  35  9 .  74 .  Their  capi  tal  stock 
is  valued  at  $1,089,114,875  and  their  funded  debt  at 
$896,005,116,  a  total  investment  of  $1,985,119,991. 
Their  gross  earnings,  as  of  June  30,  1917,  the  latest 
available,  were  $310,771,479;  operating  expenses 
totalled  $222,890,637;  and  net  operating  revenue, 
$89,892,502.  In  1917  the  number  of  passengers  car- 
ried was  53,749,680  and  the  number  of  tons  of  freight, 
121,916,272. 

[8] 


Under  the  title  of  the  Canadian  Government  Rail- 
ways there  are  now  operated  13,364  miles  of  steam 
railroads,  the  larger  part  of  this  comprising  the 
Canadian  Northern  Railway,  which  was  taken  over 
by  an  Act  of  the  Dominion  Parliament  last  year  at  an 
award  price  of  $10,800,000,  but  which  is  still  being 
operated  by  the  organization  built  up  by  those  who 
formerly  owned  the  road.  The  highly  successful 
Canadian  Pacific  Railway  is  still  privately  owned  and 
operated,  but  suggestions  have  been  made  that  it  be 
acquired  by  the  Government.  In  this  connection 
consideration  has  also  been  given  to  the  possibility  of 
bringing  all  the  railroads  under  Government  owner- 
ship, but  with  the  operation  in  the  hands  either  of  the 
Canadian  Northern  or  the  Canadian  Pacific  organi- 
zation. 

The  chief  railroads  of  Canada  are  indexes  of  the 
extent  of  that  country  and  a  glance  at  a  map  will 
show  that  they  still  fall  far  short  of  reaching  into 
every  section  of  the  country  where  commercial 
possibilities  exist.  The  Canadian  Northern  Railway 
system  comprises  more  than  9,296  miles,  distributed 
as  follows : 

Nova  Scotia 369.9    miles 

Quebec 626.77  miles 

Ontario 2,219.1    miles 

Manitoba 1,989.1    miles 

Saskatchewan    ....  2,178.1    miles 

Alberta 1,181.21  miles 

British  Columbia  .    .    .      516.4    miles 
State  of  Minnesota  .    .      215.42  miles 

[9] 


The  Canadian  Pacific  System  has  in  operation 
13,772.1  miles  and  in  addition  controls  the  Minne- 
apoHs,  St.  Paul,  and  Saulte  Ste.  Marie  Railroad,  with 
a  mileage  of  4,227.8,  and  the  Duluth,  South  Shore, 
and  Atlantic  Railroad,  with  a  mileage  of  625.8,  giving 
a  total  of  4,853.6  miles.  The  Grand  Trunk  system, 
exclusive  of  the  Grand  Trunk  Pacific  Railway,  com- 
prises 8,107  miles.  It  has  1,083  miles  of  double  track, 
including  the  longest  continuous  stretch  of  double 
track  railway  under  one  management  in  the  world. 
The  Grand  Trunk  Pacific  Railway  operates  2,804 
miles. 

There  are  2,277.9  miles  of  electric  railway  in 
Canada,  with  a  total  capital  of  $161,234,739,  of  which 
$70,606,520  is  in  stocks  and  $90,628,219  in  bonds. 
Gross  earnings  as  of  June  30,  1917  were  $30,237,663. 
The  total  income  from  operation  was  $12,431,229 
and  the  net  earnings  from  operation  were  $10,196,985. 

Manufactures 

Canadian  manufacturing  developed  rapidly  during 
the  progress  of  the  war.  There  was  an  enormous  de- 
mand for  all  products  and  the  building  of  new  plants 
or  the  extension  of  old  ones  proceeded  rapidly.  Now 
the  country  finds  itself  impelled  toward  a  continuance 
of  this  development  in  order  to  reduce  the  necessary 
importations  of  a  new  and  growing  country,  to  pay 
ofif  war  debts,  and  to  provide  employment  for  her 
retiuming  soldiers  or  those  whose  services  as  munition 

[10] 


workers  are  no  longer  required.  A  diflSculty  in  the 
way  is  the  necessity  that  basic  industries  shall  be  able 
to  put  forth  diversified  products.  The  ability  to 
concentrate  on  specialized  products,  which  permits 
of  quantity  production  at  low  cost  in  more  indus- 
trially advanced  countries,  is  denied  to  Canada  for 
the  present.  Her  builders  must  be  able,  for  example, 
to  obtain  at  one  and  the  same  plant  structural  steel, 
boiler  plates,  wire  nails,  or  any  other  steel  product 
which  they  may  require.  In  an  undeveloped  country, 
where  communities  are  widely  separated  and  where 
population  is  not  congested,  the  general  manuf-actur- 
ing  plant  is  as  necessary  as  the  general  store.  No 
other  kind  will  serve  the  community,  and  no  other 
kind  can  support  itself.  A  handicap  is  therefore 
placed  upon  Canadian  manufactures  by  the  very 
nature  of  the  country  and  the  sparseness  of  its  popu- 
lation. To  meet  this  condition,  as  to  meet  many 
others,  there  is  foreign  trade,  and  a  great  deal  of 
attention  is  accordingly  being  given  to  it.  Manufac- 
tures will  grow  with  the  assurance  that  surplus  pro- 
duction can  be  marketed  abroad. 

The  Dominion  Bureau  of  Statistics  recently  com- 
pleted its  census  of  the  manufactures  of  Canada  for 
the  year  1917.  The  returns  cover  34,380  establish- 
ments and  show  how  remarkable  has  been  the 
development  in  this  branch  of  Canadian  industry 
since  1915.  The  following  table  sets  forth  these 
contrasts : 

[11] 


1917  1915 

Capital  invested $2,772,517,680  $1,994,103,272 

Employes  on  salaries    .    .    .  73,598  52,683 

Salaries  paid $95,983,506  $60,308,293 

Employes  on  wages  (includ- 
ing piece  workers) .    .    .    .  619,473  462,200 

Wages  paid $457,245,456  $229,456,210 

Cost  of  Materials $1,602,820,631  $802,133,862 

Value  of  Products     ....  $3,015,506,869  $1,407,137,140 

The  gross  value  of  goods  made  in  Canada  in  1917 
amounted  to  $3,015,506,869  and  the  cost  of  material 
was  $1,602,820,631,  leaving  a  net  value  added  by  the 
process  of  manufacture  of  $1,412,686,238,  or  $5,449,- 
098  more  than  the  gross  value  of  production  in 
1915.  The  twenty  leading  industries  with  the  gross 
and  net  values  of  their  production  are  given  below 
in  order  of  precedence : 

Value 
gross  net 

Flour  and  grist  mill  products  .    .  $224,191,735  $40,604,799 

Steel  furnaces  and  rolling  mills  .  170,679,000  62,040,044 

Slaughtering  and  meat  packing  .  153,279,252  36,082,497 

Log  products 115,884,905  75,159,877 

Munitions 112,866,838  70,240,233 

Pulp  and  paper 96,340,324  61,627,462 

Butter  and  cheese 85,731,339  13,710,662 

Cars  and  car  works 78,564,527  39,884,077 

Bread,  biscuits,  and  confectionery      77,223,581  33,022,111 

Sugar  refined 73,139,260  20,149,349 

Smelting 69,262,167  33,591,253 

Foundry  and  machine  shop  pro- 
duction     66,945,483  43,322,382 

[12] 


Value 

gross  net 

Iron  and  steel  production    .    .    .  59,797,766  26,777,534 

Building  and  contracting.    .    .    .  54,668,255  32,927,335 

Automobiles 54,466,273  18,880,453 

Slaughtering,  not  including  meat 

packing 53,441,466  14,771,901 

Boots  and  shoes 49,170,062  22,389,519 

Electric  light  and  power  ....  44,536,848  44,536,848 
Leather — tanned,    curried,    and 

finished 41,117,128  14,492,651 

Electric  apparatus-and  supplies  .  40,204,245  20,046,238 

The  totals  of  the  twenty  leading  industries  in  gross 
and  net  value  of  production  were  $1,720,700,960  and 
$724,266,227,  and  they  represent  respectively  57  per 
cent,  and  51  per  cent,  of  the  grand  totals  for  the 
Dominion. 

The  total  capital  invested  in  Canadian  industrial 
plants  in  1917  was  $2,772,517,680,  of  which 

(a)  Land,  buildings,  and  fixtures  amounted  to  $998,351,070, 

(b)  Machinery  and  tools  to  $567,262,538, 

(c)  Materials  on  hand,  stocks  in  process,  finished  products, 

fuel,  and  miscellaneous  supplies  to  $745,546,310,  and, 

(d)  Cash,  accounts,  and  bills  receivable  to  $461,357,762. 

The  amount  of  capital  invested  in  the  leading  in- 
dustries was: 

(1)  Electric  light  and  power,  $356,004,168; 

(2)  Pulp  and  paper,  $186,787,405; 

(3)  Log  products,  $149,266,019; 

(4)  Cars  and  car  works,  $98,274,585; 

(5)  Steel  furnaces  and  rolling  mills,  $91,894,777; 

(6)  Flour  and  grist  mill  products,  $72,573,982; 

(7)  Agricultural  implements,  $70,493,801; 

[13] 


(8)  Foundry  and  machine  shop  products,  $69,915,032; 

(9)  Car  repair  shops,  $68,763,298; 

(10)  Slaughtering  and  meat  packing,  $68,145,347. 

Foreign  Trade 
For  the  last  four  years  Canada  has  had  a  favorable 
trade  balance,  due  largely,  of  course,  to  her  ship- 
ments of  foodstuffs  and  munitions.  In  respect  of  the 
latter  it  may  be  said  that  Canadian  steel  manufac- 
tures increased  125  per  cent,  during  the  war  and 
that  whereas  at  the  beginning  of  the  war  no  Canadian 
manufacturer  had  ever  made  a  shell,  or  a  cartridge 
case,  or  a  fuse,  the  country  was  furnishing,  during 
the  latter  part  of  1917,  no  less  than  55  per  cent,  of 
all  shrapnel  shells  and  42  per  cent,  of  all  4.5  shells 
used  by  the  British  Army.  From  the  time  the 
Imperial  Munitions  Board  was  established  as  the 
agent  for  the  Imperial  Government  in  December, 
1915,  orders  for  upward  of  65,000,000  shells,  of  a 
value  of  $937,456,826,  were  placed  in  the  country. 
With  the  signing  of  the  armistice  the  great  exporta- 
tion of  munitions  was  stopped  and  also,  to  a  large 
extent,  that  of  foodstuffs.  This  was  due  to  the  fact 
that  with  the  elimination  of  the  submarine  menace 
the  European  countries  found  it  no  longer  necessary 
to  keep  immense  reserves  on  hand  to  provide  against 
some  possible  submarine  disaster.  Now,  however, 
these  countries  can  use  up  their  reserves  without  fear, 
since  both  supplies  and  tonnage  will  be  available 
when  they  are  wanted.  This  means  a  temporary 
curtailment  of  the  exportation  of  Canadian  food 
[14] 


products,  and  stores  in  Canada  are  accumulating 
rapidly.  Exports  in  December,  1918,  were  the  small- 
est in  three  years.  There  was  also  in  that  month  an 
expansion  of  imports,  so  that  Canada's  favorable 
trade  balance  was  reduced  for  the  month  to  $34,- 
000,000,  against  $86,000,000  in  1917,  $62,000,000  in 
1916,  and  $46,000,000  in  1915. 

Exports  of  domestic  produce  and  imports  entered 
for  consumption  for  the  full  twelve  months  of  each 
of  the  past  seven  years,  with  the  balance  for  or 
against  Canada,  are  given  in  the  following  table: 


YEAR 
1918    .     . 

EXPORTS 

IMPORTS 

$906,670,404 

BALANCE 

$1,229,208,244 

+  $322,537,840 

1917  . 

.      1,547,430,855 

1,005,071,716 

+542,359,139 

1916  . 

1,091,706,403 

766,501,512 

+325,204,891 

1915  . 

614,129,845 

450,517,774 

+  163,612,071 

1914  . 

379,291,000 

481,214,000 

-101,923,000 

1913  . 

436,213,000 

659,061,000 

-222,848,000 

1912  . 

341,978,000 

635,585,000 

-293,607,000 

A  report  of  the  Dominion  Bureau  of  Statistics 

gives  the  following  tabular  analysis  of  the  character 

and  value  of  the  export 

s  from  Canada  during  the 

year  1918  and  1917: 

1918 

1917 

The  mine 

$75,708,425 

$77,389,963 

The  fisheries 

33,577,772 

28,323,877 

The  forest 

65,436,204 

52,280,875 

Animal  produce 

176,407,332 

170,561,884 

Agricultural  products  .    .    . 

320,524,859 

531,300,259 

Manufactures 

552,683,692 

682,431,692 

Miscellaneous 

5,369,960 

5,052,305 

Total  export,  mdse.  .    .    . 

$1,229,708,244 

$1,547,340,855 

[15] 

The  source  and  distribution  and  the  values  of 

Canadian  imports  and  exports  for  the  years  1918  and 
1917  are  shown  in  the  following  tables: 

IMPORTS  BY  COUNTRIES  1918  1917 

United  Kingdom     .    .    .  $72,879,109  $91,136,728 

Australia 6,084,963  979,018 

British  East  Indies     .    .  17,026,095  13,311,740 

British  Guiana     ....  5,088,972  8,120,098 

British  South  Africa   .    .  1,331,842  510,765 

British  West  Indies    .    .  8,930,109  11,117,883 

Hongkong 2,343,958  1,712,920 

Newfoundland     ....  3,287,340  2,743,597 

New  Zealand 7,014,313  3,351,394 

Other  British  Empire.    .  1,371,069  1,591,579 

Argentine  Republic     .    .  1,726,489  1,761,799 

Brazil 1,128,616  1,036,788 

China 1,867,405  1,268,662 

Cuba 2,034,654  1,047,062 

France 3,754,761  5,715,770 

Italy 642,071  855,900 

Japan 13,184,893  11,100,455 

Netherlands 582,507  1,130,855 

United  States 738,142,064  828,886,594 

Other  foreign  countries  .  18,533,670  17,692,109 


EXPORTS  BY  COUNTRIES  1918  1917 


United  Kingdom 

Australia 

British  East  Indies 
British  Guiana     .    . 
British  South  Africa 
British  West  Indies] ' 


$594,250,690  $873,706,892 
11,169,474  8,145,426 
2,814,378  4,131,651 
2,216,001  2,070,809 
9,704,215  4,881,526 
8,352,253        6,319,644 


[16] 


EXPORTS  BY  COUNTRIES  1918  1917 

Hongkong 968,766  1,000,475 

Newfoundland     ....  10,877,766  8,723,489 

New  Zealand 4,605,115  4,181,290 

Other  British  Empire     .  2,505,588  1,519,281 

Argentme  Republic     .    .  2,683,179  1,516,914 

Brazil 3,825,859  1,088,269 

China 2,934,663  1,471,803 

Cuba 4,879,779  3,640,784 

France 101,501,396  200,289,282 

Italy 9,516,642  2,318,838 

Japan 10,624,274  3,766,267 

Netherlands 1,026,052  2,102,428 

United  States 433,232,149  401,479,287 

Other  foreign  countries  .  12,020,005  14,986,500 

A  comparison  of  Canadian  imports  from  and  ex- 
ports to  the  United  States  in  the  last  three  years 
follows : 

1918  1917  1916 

Imports     ....  $738,142,064    $828,886,594    $592,088,039 
Exports 433,232,149      401,479,287      260,924,864 


Excess  of  Imports  $304,909,915    $427,407,307    $331,163,175 

Despite  the  eflforts  made  by  Canada  to  curtail 
buying  from  the  United  States  during  1918  in  the 
hope  of  reducing  or  eliminating  the  premium  on 
American  dollars  in  Canada,  due  to  Canada's  heavy 
purchases  here  and  her  inability  to  offset  an  un- 
favorable balance  with  the  United  States  with  favor- 
able balances  elsewhere,  there  was  little  change  pro- 

[17] 


portionately .  Of  every  $100  worth  of  goods  imported 
by  Canada  during  the  year,  about  $81  worth  came 
from  the  United  States,  against  $82  in  1917  and  $77 
in  1916.  On  the  other  hand  the  proportion  of 
Canadian  exports  to  the  United  States  to  total  ex- 
ports rose  to  35  per  cent,  against  26  per  cent,  in 
1917,  the  expansion  taking  place  in  lines  such  as 
pulp,  paper,  asbestos  products,  nickel,  etc. 

Shipbuilding 

Canada  is  very  proud  of  her  war  record  in  ship- 
building and  the  policy  now  being  carried  out  will 
not  only  absorb  many  hundreds  of  munition  workers 
and  soldiers  from  Europe,  but  will  also  be  of  great 
assistance  to  the  export  business  of  the  country.  In 
1914  shipbuilding  in  Canada  was  of  no  importance, 
the  production  for  the  year  being  only  43,346  tons. 
With  the  outbreak  of  the  war  the  industry  was  re- 
juvenated and  no  less  than  381  vessels  of  various 
types  were  constructed  during  the  war.  The  fourteen 
yards  of  the  country  were  kept  busy  at  first  with 
contracts  made  by  the  Imperial  Munitions  Board; 
later  on  the  Department  of  Marine  and  Fisheries 
arranged  a  program  of  building  for  the  Dominion 
Government.  This  provides  for  the  construction  of 
forty-three  steel  ships  of  a  tonnage  of  211,300  dead- 
weight and  forty-six  wooden  ships  of  128,800  tons 
deadweight,  the  former  costing  $40,000,000  and  the 
latter  almost  $25,000,000.   Since  the  signing  of  the 

[18] 


armistice  the  abandonment  of  the  wooden  ship  part 
of  the  program  has  been  under  discussion.  Contracts 
have  also  been  made  for  ships  for  the  account  of  Nor- 
way and  France.  The  first  vessel  for  Canadian  Gov- 
ernment account  was  launched  early  in  December, 
1918.  It  is  hoped  that  before  June  1  fifteen  ships 
will  have  been  launched  and  that  before  the  end  of 
the  year  1919  at  least  thirty  will  be  in  the  water. 

Hydro-Electric  Power 

Because  Canada  has  had  to  import  so  much  coal 
to  maintain  her  railroads  and  industries,  attention 
has  been  more  and  more  directed  during  the  war 
years  to  the  possibility  of  developing  electrical  energy 
through  utilization  of  water  power.  A  table  prepared 
recently  by  A.  M.  Beale,  Administration  Engineer 
and  Dominion  Land  Surveyor,  shows  the  available 
water  power  of  the  Dominion  to  be  18,803,000  horse- 
power. There  has  been  developed  so  far  only  1,735,- 
598  horse-power,  which  he  figures  is  the  equivalent 
under  average  conditions  to  an  annual  coal  consump- 
tion of  53,213,000  short  tons.  This  is  nearly  twice 
as  great  as  the  annual  coal  consumption  of  the 
Dominion. 

The  Dominion  Bureau  of  Statistics  recently  com- 
pleted a  survey  of  central  electric  power  stations, 
that  is,  stations  developing  electrical  power  for  sale. 

The  capital  invested  in  power  stations  totals 
5,004,168,  of  which  79.5  per  cent  is  invested  in 

[19] 


commercial  stations  and  W.5  per  cent  in  municipal 
or  public-owned  stations.  Total  employes  number 
8,840,  receiving  wages  and  salaries  totalling  $7,777,715 
per  annum. 

The  total  revenue  received  from  the  sale  of  elec- 
trical energy  was  $44,536,848,  of  which  $29,135,399 
was  secured  by  commercial  and  $15,401,449  by 
municipal  plants.  The  primary  power  installation  in 
central  stations  totals  1,844,571  horse-power,  of 
which  78.3  per  cent.,  or  1,444,314  horse-power,  is 
installed  in  commercial  stations,  and  21.7  per  cent., 
or  400,257  horse-power,  in  municipal  stations.  Of 
the  total  primary  horse-power  installed,  1,652,661 
horse-power  is  derived  from  water,  180,800  from 
steam,  and  11,710  from  gas  and  oil. 

Of  special  interest  is  the  actual  cost  of  construction 
of  hydro-electric  power  stations  per  installed  horse- 
power. Omitting  all  real  estate,  transmission,  and 
distribution  equipment,  seventy  representative  hydro- 
electric stations  throughout  the  Dominion,  with  an 
aggregate  turbine  installation  of  745,797  horse-power, 
and  a  total  construction  cost  of  $50,740,458,  show  an 
average  cost  of  $69.11  per  installed  turbine  horse- 
power. 

One  of  the  most  important  facts  disclosed  by 
the  survey  is  the  outstanding  position  which  water 
power  takes  in  the  central  station  field.  Out  of 
a  total  installed  primary  capacity  of  1,844,571  horse- 
power,|j,652,661,   or  89.6  per    cent., — practically 

[20] 


90  per  cent., — is  derived  from  water.  This  figure  is 
indicative  of  the  extent  and  availability  of  the  water 
power  resources  of  the  Dominion  and  of  the  remark- 
able' degree  to  which  their  adaptability  for  central 
station  work  has  been  appreciated  in  principle  and 
realized  in  practice. 

Development  of  electric  energy  by  water  power  is 
being  urged  by  many  Canadians  not  only  as  a  means 
of  reducing  the  country's  enormous  coal  bill,  but  also 
as  a  labor  saving  measure  which  will  enable  the 
laborer  to  increase  his  net  output.  Mr.  Beale  says 
that  in  Great  Britain  a  great  deal  of  attention  has 
been  given  to  the  subject  and  figures  have  been  sub- 
mitted to  prove  that  the  continuance  of  the  upward 
trend  of  wages  is  dependent  upon  the  greater  per 
capita  use  of  mechanical  energy.  He  adds:  "The 
old  idea  of  restricted  output  in  order  to  keep  up 
prices  and  wages  seems  about  to  give  way  to  the 
new  one  of  stimulated  output,  the  greater  production 
of  marketable  manufactures  per  capita  by  the  intro- 
duction of  labor-saving  devices,  automatic  machinery, 
etc.,  and  it  seems  probable  that  labor  will  accept  the 
new  regime  and  share  in  the  rewards  of  enhanced 
output." 

Canada's  Financial  Record 

No  estimate  of  Canada's  resources  would  be  com- 
plete without  an  account  of  that  country's  remark- 
able accomplishments  in  finance,  or  without  some 
indication  of  their  bearing  upon  the  future  relations 

[21] 


between  Canada  and  the  United  States.  Canada 
borrowed  heavily  abroad  in  the  years  before  the  war. 
E.  R.  Wood,  president  of  the  Dominion  Securities 
Corporation,  estimates  sales  of  Canadian  bonds  for 
the  five  years  1910-1914  at  $1,417,481,922,  of  which 
total  Canada  absorbed  14.35  per  cent.,  the  United 
States  10.50  per  cent.,  and  Great  Britain  75.10  per 
cent.  He  places  the  total  sales  for  the  war  years, 
1915-1918,  at  $2,207,140,715,  of  which  Canada  ab- 
sorbed 61.74  per  cent.,  the  United  States,  34.06  per 
cent.,  and  Great  Britain,  4.20  per  cent.  The  entrance 
of  the  United  States  into  the  war  threw  Canada  upon 
her  own  financial  resources  entirely  and  the  manner 
in  which  her  people  accepted  the  added  burden  is 
shown  by  the  fact  that  the  amounts  of  her  war  loans 
and  the  number  of  subscribers  increased  steadily. 

In  November,  1915,  the  Government  asked  for 
$50,000,000.  The  amount  subscribed  was  $113,729,- 
500  and  the  number  of  subscribers  was  24,862.  In 
September,  1916,  the  amount  asked  for  was  $100,- 
000,000.  Including  conversions,  the  total  subscrip- 
tion was  $195,371,000,  and  the  number  of  subscribers, 
34,526.  In  March,  1917,  a  loan  of  $150,000,000  was 
asked  for,  and,  including  conversions,  a  subscription 
of  $236,654,000  was  registered,  while  the  number  of 
subscribers  went  up  to  41,000.  Another  $150,000,000 
was  asked  for  in  November,  1917.  This  loan  was 
offered  at  par  with  an  interest  bonus  on  the  first 
coupon,  the  rate  being  5}/^  per  cent.   The  subscrip- 

[22] 


tions  totalled  $419,289,000  and  the  number  of  sub- 
scribers, increased  to  820,035.  The  amount  allotted 
on  these  four  issues,  not  including  conversions  in  the 
second  and  third  loans,  was  $764,187,800;  the  aver- 
age subscription  was  $4,128;  and  the  subscription 
per  capita  rose  from  $14  in  the  first  loan  to  $52  in 
the  loan  of  November,  1917. 

The  Canadian  Victory  Loan  of  November,  1918, 
begun  five  days  after  the  signing  of  the  armistice, 
eclipsed  all  previous  records.  The  amount  asked  for 
was  $300,000,000.  While  the  results  have  not  been 
fully  tabulated  a  statement  compiled  in  January 
shows  a  total  subscription  of  $695,389,227.  One  per- 
son in  every  seven  subscribed  and  the  average  per 
capita  subscription  for  the  Dominion  as  a  whole  was 
$88.91.  The  number  of  subscribers  was  well  over 
1,064,000. 

To  float  this  loan  it  was  necessary  to  take  from 
past  as  well  as  current  savings.  Savings  deposits  in 
the  Canadian  chartered  banks  dropped  from  $1,076,- 
000,000  in  October,  the  highest  level  ever  reached  in 
Canadian  banking,  to  $939,000,000  in  November, 
but  by  the  end  of  January  they  were  up  to 
$990,000,000,  a  recovery  of  $19,000,000  in  December 
having  been  followed  by  one  of  $31,000,000  in 
January.  Adding  to  savings  deposits  the  deposits 
subject  to  withdrawal  on  demand,  the  total  to  the 
credit  of  the  Canadian  people  on  February  1  was 
$1,613,000,000,    as   compared   with    $1,720,000,000 

[231 


just  prior  to  the  last  loan.  These  figures  are  the  more 
astonishing,  considering  that  the  working  population 
of  the  Dominion,  estimated  at  8,075,000  in  1914,  was 
decreased  by  a  very  large  overseas  army,  when  the 
fact  is  disclosed  that  the  banks  of  the  country  did 
not  take  the  loan.  During  the  war  period  the  banks 
subscribed  to  a  total  of  only  $50,000,000  and  these 
bonds  were  sold  to  the  public  in  the  course  of  a  few 
months.  With  such  a  record  Canada  faces  the  future 
without  any  fear.  Her  war  debts  will  be  paid  quickly, 
and  while  interest  charges,  pensions,  and  huge  sums 
for  reconstruction  work  and  development  of  her  re- 
sources will  entail  heavy  burdens  upon  her,  the 
number  of  her  workers  is  expected  to  increase  rapidly 
and  there  is  no  voice  of  pessimism  raised  within  her 
borders. 

America's  Interest  in  Canada 

What  has  been  the  part  hitherto  played  by  the 
United  States  in  Canada's  development,  and  what 
is  it  likely  to  be  in  the  future?  In  spite  of  the  fact 
that  the  United  States  in  the  past  has  been  chiefly 
pre-occupied  with  its  own  internal  development,  she 
has  contributed  a  fair  share  toward  Canada's  eco- 
nomic expansion.  While  Great  Britain  has  been 
largely  responsible  for  the  extension  of  the  Canadian 
railroad  system,  the  United  States  played  the  great- 
est part  in  Canada's  industrial  development.  It  was 
United  States  capital  that  developed  the  water  power 

[24] 


and  industries  around  Sault  Ste.  Marie.  The  coal 
industry  of  Nova  Scotia  and  the  great  steel  works  of 
Sydney  have  been  built  through  American  enterprise. 
American  promoters  have  obtained  franchises  to  de- 
velop the  Canadian  side  of  the  Niagara  Falls.  It  was 
American  eflFort  that  accomplished  the  greater  part 
of  the  development  of  the  Klondike.  Half  of  the 
great  mining  industry  of  British  Columbia  may  be 
said  to  belong  to  United  States  capital.  Two  of 
Canada's  leading  industries — ^timber  and  lumber — 
are  considered  to  be  pre-eminently  the  development 
of  United  States  capital.  A  considerable  number  of 
agricultural  plants  and  warehouses  have  been  estab- 
lished by  American  capital  throughout  the  agricul- 
tural areas  of  Canada.  Generally  it  may  be  said 
that  as  investors  the  people  of  the  United  States 
have  had  a  great  deal  to  do  with  the  remarkable 
development  of  natural  resources,  agricultural  pro- 
duction and  production  of  minerals  which  has  taken 
place  in  Canada. 

Mr.  H.  P.  Willis,  formerly  secretary  of  the  Federal 
Reserve  Board,  is  authority  for  the  statement  that 
the  total  American  investments  in  Canada  prior  to 
the  war  amounted  to  more  than  $600,000,000.  The 
war  greatly  stimulated  American  investments  in 
Canada  which,  according  to  the  best  estimates,  have 
nearly  doubled  during  the  last  four  years,  reaching 
the  prodigious  sum  of  $1,272,850,000,  and  distributed 
as  follows: 

125] 


500    branch   firms    (average   invest- 

i  merit  $300,000)  ^ $150,000,000 

Government,  municipal,  and  corpo- 
ration bonds  (1905-13) 123,743,000 

Government,  municipal,  and  corpo- 
ration bonds  (1913-17) 590,506,000 

Insurance  compapy  investments  .    .  94,276,000 

British  Columbia  mills  and  timber  .  75,000,000 

British  Columbia  mines 62,000,000 

British  Columbia  Land  transactions  60,000,000 

Prairie  provinces  land  transactions  .  41,000,000 

City  and  town  properties 20,000,000 

Maritime  provinces  investments  .    .  13,125,000 

Industrial  investments,  miscellaneous  12,200,000 

Prairie  provinces  lumber  and  mines.  10,500,000 

Agricultural  implement  firms    .    .    .  9,250,000 

Packing  plants 6,750,000 

Theatrical  enterprises 3,500,000 

Fox  Farms  (Prince  Edward  Island) .  1,000,000 

$1,272,850,000 

There  are  jfive  hundred  branch  firms  of  American 
industries  located  in  Canada.  These  branches  are 
usually  well  provided  with  working  capital  and  will 
undoubtedly  continue  to  contribute  much  to  the 
development  and  strengthening  of  industry  in  Canada. 

One  of  the  most  effective  ways  in  which  the  United 
States  has  contributed  to  the  economic  development 
of  Canada  has  been  through  the  movement  to 
western  and  northwestern  Canada  of  agricultural  set- 
tlers who  have  been  very  influential  in  the  development 
of  the  great  wheat  growing  section  of  the  Dominion. 
During  the  fifteen  years  before  the  war  the  total 

[26] 


number  of  persons  entering  Canada  from  the  United 
States  was  1,014,000,  while  the  number  of  people 
entering  the  United  States  from  Canada  was  431,000, 
indicating  a  net  gain  to  Canada  of  583,000  immi- 
grants. Besides  being  an  economic  asset  to  the  coun- 
try as  producers  of  wealth,  these  immigrants  brought 
with  them  a  considerable  amount  of  wealth,  amount- 
ing to  $192  per  immigrant,  or  a  total  of  $195,000,000 
for  this  fifteen-year  period. 

Canada's  Investments  in  the  United  States 

United  States  investment  in  Canada  brought  as  a 
natural  consequence  some  Canadian  investment  in 
the  United  States ;  but  this  never  grew  to  any  great 
proportions,  as  Canadian  capital  was  lured  away 
from  foreign  fields  by  the  attractive  opportunities 
naturally  offered  by  a  country  so  young  and  unde- 
veloped. For  the  most  part,  Canadians  showed  in- 
terest in  private  corporation  holdings,  as,  for  instance. 
United  States  Steel  Corporation  stock,  of  which  the 
total  Canadian  holdings  in  1914  were  $7,892,000.  It 
seems  hardly  likely  that  there  has  been  any  marked 
accumulation  of  American  securities  in  Canada  of 
late,  for  the  need  of  conserving  capital  in  that  country 
has  compelled  the  Minister  of  Finance  to  discourage 
foreign  investment. 

After  the  declaration  of  war  by  the  United  States, 
and  the  Government's  entrance  upon  a  policy  to 
conserve  capital  for  war  purposes,  it  was  not  so  easy 

[27] 


for  other  countries  to  borrow  in  our  open  market. 
This  naturally  had  its  bearing  on  the  financial  situa- 
tion in  Canada  and  it  seemed  as  if  the  United  States 
market  was  practically  closed  to  Canadian  offerings. 
It  appears,  however,  that  the  United  States  Govern- 
ment had  placed  contracts  amounting  to  $125,000,000 
with  Canadian  munition  concerns,  and  that  Great 
Britain  has  utilized  $400,000,000  of  the  credit  ad- 
vanced by  the  United  States  Government  to  Great 
Britain  since  April,  1917,  for  the  payment  of  goods 
that  Great  Britain  has  purchased  from  Canada. 

It  will  be  seen  that  these  sums  have  practically 
approximated  the  annual  borrowings  of  Canada  from 
other  countries,  except  for  the  abnormal  year  1917. 

Increase  in  Financial  Relations 

As  has  been  indicated,  the  increase  in  financial 
relations  between  Canada  and  the  United  States 
has  been  an  outgrowth  of  conditions  concomitant 
with  the  war,  and  the  question  may  be  raised  whether 
in  the  future  there  will  be  a  tendency  for  these  finan- 
cial relations  to  become  permanent.  In  this  connec- 
tion there  are  certain  considerations  which  would 
indicate  that  after  the  declaration  of  peace  the 
financial  relations  between  the  two  countries  should 
become  more  important  than  they  were  before  the 
outbreak  of  the  present  war. 

As  has  been  pointed  out,  one  of  the  important 
factors  in  the  relations  between  Canada  and  the 

[28] 


United  States  has  been  the  movement  of  peoples 
between  the  two  countries.  Such  movements  always 
tend  to  bring  nations  closer  together  in  trade  and 
financial  relationship.  One  of  the  important  eco- 
nomic results  of  the  present  world  war  will  probably 
be  an  increase  in  the  movement  of  peoples  between 
countries,  and  it  is  not  unhkely  that  the  great 
Canadian  northwest  will  be  further  developed  by 
the  sturdy  men  of  our  great  Middle  West  who  have 
had  their  spirit  of  adventure  quickened,  and  natur- 
ally the  opportunities  of  this  region  will  make  an 
appeal  to  them. 

The  Spirit  of  Adventure 

In  1914  the  combination  of  economic  forces  of  the 
world  was  preparing  for  the  development  of  new 
areas.  With  the  world  war  quickening  the  spirit  of 
adventure  in  man  and  tending  to  break  down  the 
barriers  that  had  tended  to  prevent  the  free  move- 
ment of  peoples  between  countries,  and  with  the 
pressure  to  increase  the  world's  supply  of  foodstuffs 
and  raw  materials,  it  is  probable  that  in  the  long 
term  jswing,  after  the  declaration  of  peace,  the 
undeveloped  areas  of  the  world  will  experience  a 
development  the  magnitude  of  which  we  are  not 
able  today  to  gauge.  Canada,  with  her  abundance 
of  raw  materials,  her  large  forest  wealth,  her  large 
areas  of  agricultural  land  awaiting  development,  will 
undoubtedly  attract  men  and  capital. 

[29] 


The  last  quarter  of  a  century  has  seen  a  gradual 
change  in  the  economic  Ufe  of  the  United  States. 
Previously  we  had  been  in  the  position  of  a  new 
country  with  a  frontier  constantly  being  developed 
and  expanded,  which  was  absorbing  people  and 
capital  of  various  countries  of  the  world.  We  have 
largely  developed  this  frontier  area  and  have  built 
up  an  industrial  capacity  to  such  an  extent  that  be- 
fore the  outbreak  of  the  war  we  were  reaching  the 
point  where  as  a  nation  there  would  be  surplus  funds 
available  for  investment.  During  the  European  war 
the  industrial  capacity  of  the  country  has  been  mate- 
rially increased,  and  the  United  States  as  a  country 
is  in  a  position  to  be  a  lender  of  capital  to  other 
countries.  Because  we  know  Canada  better  than 
perhaps  any  other  country,  and  because  of  the 
Dominion's  great  opportunities,  our  country  ought 
to  play  a  part  in  the  development  of  the  natural 
resources  of  Canada  which  will  be  beneficial  to  the 
industry  and  enterprise  of  both  countries. 


[30] 


398587 


V-i 


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